|
|
Article: Stopping the rot in Brazil; Latin American economies.(South America's financial panic)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- August 3, 2002
CopyrightCOPYRIGHT 2002 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The presidential candidates, as well as the IMF, can help
FOR the second time in two months, fear swept through Brazil's financial markets this week, with the inexorable momentum of Ronaldo, the country's World Cup striker, crashing through opposing defences. The currency slumped and the risk premium on Brazil's bonds soared, putting them on a similar level to Nigeria's.
Why? Brazil has a presidential election in October. Voters will choose a successor to Fernando Henrique Cardoso, who has since 1995 done much to modernise his country's government and economy, but at the cost of piling up a large public debt. Investors abhor uncertainty. And the opinion ...